KARACHI, Jan 22: Stocks on Tuesday again showed highly erratic movements as investors played on both sides of the fence selling at the rise and buying at the dips, reflecting the prevailing political uncertainty.

While most of the pivotals came in for fresh profit-selling amid wide price fluctuations, some of the second-liners provided the much-needed safe haven to the investors where the financial risks, if any in the dealings, are not that alarming.

After having fallen by 300 points in early trading, the KSE 100-share index on Monday staged a massive recovery on short-covering at the lower levels and ended with a clipped fall of 90.68 points at 13,759.51.

Essentially, it appears to be Monday’s repeat performance as leading base shares, notably OGDC, PTCL, National Bank and some others significantly contributed to the initial fall and though finished well above the session’s low on late covering purchases.

The early fall was attributed to a belated sympathetic reaction to turmoil in the regional stock markets and the New York bourse on fears of global recession but later massive recovery of about 200 points reflects that there is nothing wrong with the inherent strength of the KSE.

“I don’t think the local market has much relevance to the turmoil on the international bourses because of its narrow base,” said a leading stock analyst adding: “India can do as world investors had a massive stake in it.”

Foreign funds had already withdrawn a good part of their investment in the share business since the political uncertainty made deeper inroads in the local politics and they may not resume their fresh operations until the national election on Feb 18 after having ascertained that the new regime is stable.

But Ahsan Mehanti thinks decline in regional markets, notably India where it has fallen by another five per cent for the second consecutive session did impact the local trading, while steep fall in world oil prices accelerated the early fall.

“The terribly high volatility of well over 300 points in a session reflects investors’ worries about the future outlook,” another analyst Hasnain Asghar Ali said adding: “No one is inclined to make long-term investment in the prevailing conditions and that reflects the investors’ mood”.

The market appears to be in the tight grip of speculative traders and bargain-hunters and they swing it either way as they like it but are the ultimate gainers, they added.

JS & Co, which has been under pressure during the post-dividend sessions, led the list of gainers, up by Rs54.25 followed by Arif Habib Ltd, which rose by Rs17.15. Other notable gainers included National Foods, Shell Gas, EFU Life, Hino Pak, Ferozsons Lab, Wyeth Pakistan, Murree Brewery, AKD Capital and Adamjee Insurance, which posted gains ranging from Rs7 to Rs17.

Attock Petroleum and Shell Pakistan were leading among the losers, off by Rs12.10 each followed by Fazal Textiles, Fateh Textiles, Berger Paints, Packages, Mitchell’s Fruits, ICI Pakistan, Millat Tractors and Pakistan Resource Co, off by Rs5.25 to Rs9.05.

Trading volume rose to 285m shares from the previous 236m shares as gainers trailed far behind the losers at 105 to 190, with 45 shares holding on to the last levels.

NIB Bank again led the list of actives, firm by 30 paisa at Rs22.80 on 41m shares followed by Bosicor Pakistan, steady by 75 paisa at Rs21.55 on 28m shares and TRG Pakistan, lower 35 paisa at Rs12.65 on 19m shares.

OGDC, off by Rs2.25 at Rs118.00 on 16m shares, Arif Habib Securities, steady by 45 paisa at Rs171.50 on 13m shares, PTCL, off 85 paisa at Rs38 on 10m shares and National Bank, off Rs2.75 on 9m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, easy by 85 paisa at Rs1.65 on 12m shares, followed by Pervez Ahmed Securities, up by Rs2.30 at Rs63.50 on 9m shares and Sitara Peroxide, higher by 45 paisa at Rs70.25 on 8m shares.

FORWARD COUNTER: Arif Habib Bank came in for modest selling and led the list of actives at Rs31.50, off 45 paisa on 5m shares, followed by MCB, easy by 18 paisa at Rs382.75 also on 5m shares and National bank, off Rs2.80 at Rs223.75 on 4m shares.